Treasury Dept. Reviewing Information Collections on Drawback, Exports

Wednesday, November 29, 2017

Sandler, Travis & Rosenberg Trade Report

The Treasury Department is accepting comments through Dec. 28 on the following information collections.

- Forms TTB F 5210.5 and TTB F 5250.1, Manufacturers of Non-beverage Products - Records to Support Claims for Drawback: The Internal Revenue Code imposes a federal excise tax of $13.50 per proof gallon on distilled spirits produced in or imported into the U.S. but also allows manufacturers of certain non-beverage products that are unfit for beverage use (medicines, medicinal preparations, food products, flavors, flavoring extracts, or perfume) to claim drawback of all but $1.00 per proof gallon of the excise tax paid on the distilled spirits used in the production of such products. TTB regulations governing claims for such drawback include a requirement to keep source records such as information about distilled spirits received, gauge records, evidence of taxes paid, the date spirits were used, the quantity and kind used in each product, receipt and usage of other ingredients (to validate formula compliance), inventory records, records of recovered alcohol, the quantity of intermediate products transferred to other plants, the disposition of each non-beverage product produced, and the purchasers (except for retail sales).

- Proprietors or Claimants Exporting Liquors: Distilled spirits, wine, and beer may be exported without payment of federal excise tax. In addition, tax-paid distilled spirits, wine, and beer may be exported and the exporter may claim drawback on the excise taxes paid. Exporters must complete various forms to show that the products were in fact exported. Under the TTB alcohol beverage export regulations, proprietors and drawback claimants are required to maintain record copies of all pertinent forms and commercial records that document the exportation of non-tax-paid alcohol beverages and the exportation of tax-paid alcohol beverages for which drawback will be claimed.